Format du dépôt |
Fichier |
Type de dépôt |
Pré-publication, Document de travail |
Titre |
en
An agent-based model of trickle-up growth and income inequality
|
Sous-Titre |
en
GREDEG Working Papers Series
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Résumé |
en
We build an agent-based model to study how coordination failures, credit con- straints and unequal access to investment opportunities affect inequality and aggre- gate income dynamics. The economy is populated by households who can invest in alternative projects associated with different productivity growth rates. Access to investment projects also depends on credit availability. The income of each house- hold is determined by the output of the project but also by aggregate demand conditions. We show that aggregate dynamics is affected by income distribution. Moreover, we show that the model features a trickle-up growth dynamics. Redis- tribution towards poorer households raises aggregate demand and is beneficial for the income growth of all agents in the economy. Extensive numerical simulations show that our model is able to reproduce several stylized facts concerning income inequality and social mobility. Finally, we test the impact of redistributive fiscal policies, showing that fiscal policies facilitating access to investment opportunities by poor households have the largest impact in terms of raising long-run aggregate income and decreasing income inequality. Moreover, policy timing is important: fiscal policies that are implemented too late may have no significant effects on in- equality.
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Auteur(s)
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Elisa Palagi
1
, Mauro Napoletano
2, 3, 4, 1
, Andrea Roventini
1, 3
, Jean-Luc Gaffard
2, 3, 4
1
SSSUP -
Scuola Universitaria Superiore Sant'Anna [Pisa]
( 58000 )
- Piazza Martiri della Libertà 33 - 56127 Pisa
- Italie
2
GREDEG -
Groupe de Recherche en Droit, Economie et Gestion
( 185786 )
- GREDEG - Bâtiment 2 - Campus Azur du CNRS - 250 rue Albert Einstein - CS 10269 - F
06905 SOPHIA ANTIPOLIS Cedex
- France
-
Université Nice Sophia Antipolis (1965 - 2019) ( 117617 )
;
-
Centre National de la Recherche Scientifique UMR7321 ( 441569 )
;
-
Université Côte d'Azur UMR7321 ( 1039632 )
3
OFCE -
Observatoire français des conjonctures économiques (Sciences Po)
( 250936 )
- 10 place de Catalogne - 75014 Paris
- France
4
SKEMA Business School
( 344663 )
- France
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Licence |
Paternité - Partage selon les Conditions Initiales
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Langue du document |
Anglais
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Mots-clés (JEL) |
-
D - Microeconomics/D.D3 - Distribution/D.D3.D31 - Personal Income, Wealth, and Their Distributions
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E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook/E.E6.E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy • Stabilization • Treasury Policy
-
E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E21 - Consumption • Saving • Wealth
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C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C63 - Computational Techniques • Simulation Modeling
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Référence interne |
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GREDEG Working Papers Series
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Domaine(s) |
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Sciences de l'Homme et Société/Economies et finances
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Collaboration/Projet |
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Projet(s) Européen(s) |
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GROWINPRO
- Growth Welfare Innovation Productivity
Numéro CORDIS :
822781
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Mots-clés |
en
income inequality, social mobility, credit constraints, coordination failures, effective demand, trickle-up growth, fiscal policy
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